Instructions For Schedule P (Form 540nr) - Alternative Minimum Tax And Credit Limitations - Nonresidents Or Part-Year Residents - 2013 Page 7

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Part III Credits That Reduce Tax
Section B1 Instructions
Line 14 through Line 17 – If you have any of the credits listed in this
Complete Part III only if you have tax credits.
section, complete column (a) through column (c) for each credit in the
Use Part III to determine the following:
order listed.
• Amount of credit that may be used to offset tax.
Enter the lesser of the prorated credit or the maximum allowed for
• Tax that may be offset.
the credit from the worksheet for line 55 instructions in the Long
• Amount of credit, if any, that may be carried over to future years.
Form 540NR.
• Order in which to claim credits, if you have more than one credit to
Section B2 Instructions
claim.
Line 18 through Line 21 – Follow the Credit Table instructions to find
Before you begin Part III:
out in which section to claim your credit. Then complete column (a)
• Complete Long Form 540NR through line 42.
through column (d) for each credit in each section before going to the
• Figure the amount of your credits using the credit form or worksheet
next section.
identified on the Credit Table on page 8. Attach the credit form to
your Long Form 540NR, if applicable.
Generally, it is to your advantage to apply credits with limited carryovers
before credits with no limitation on carryover. However, you may apply
To complete Part III:
credits with no limitation on carryover first, if that is to your advantage.
• Complete line 1 through line 3 to figure the amount of excess tax you
Section B3 Instructions
may offset by credits.
• Identify which sections of Part III you may use to take your tax
Line 22 – If you have other state tax credit, complete column (a)
credits. Credits without carryover provisions are listed on Schedule P
through column (c). Get Schedule S, Other State Tax Credit, for more
(540NR) in Section A1, Section B1, and Section B3 and may be taken
information.
only in these sections. See the Credit Table on page 8 for a list of
Section C Instructions
credits. This table identifies the sections of Part III in which you may
Line 24 and Line 25 – If you have any of the credits listed in this
take these credits.
section, complete column (a) through column (d) for each credit in the
• If you have credits in Section B, complete line 13 in addition to the
order listed.
lines for your credits.
Column Instructions
• Enter the credit code and credit name in the space provided. Refer to
the Credit Table on page 8 for the credit code.
In column:
• Complete column (a) through column (d) for each line on which you
(a) Enter the amount of credit available to offset tax.
are taking a credit. Refer to “Column Instructions.”
(b) Figure the amount of credit you are able to use this year by entering
• If your credits are taken in more than one section, complete each
the smaller of the amount in column (a) or the amount in column (c)
section before going to the next section.
from a previous line.
• Once you complete Part III, see “How to Claim Your Credits.”
(c) Figure the amount of tax remaining to be offset by other credits by
Section A Instructions
subtracting the amount in column (b) from the balance in column (c)
of a previous line.
Line 3 – Subtract line 2 from line 1. If the amount is zero or less than
(d) Enter the amount of credit carryover available to use in future
zero, go to question 1. If the amount is more than zero, go to Section A1
years by subtracting the amount in column (b) from the amount in
instructions.
column (a).
1. Does the Credit Table show that you may take your credit ONLY in
How to Claim Your Credits
Section A1 or Section A2?
Claim your credits by transferring them to Long Form 540NR as follows:
Yes You may not take the credit this year. Go to question 2.
Credits from Part III, Line 14, Line 15 and Line 16, – Add the amounts
No Go to Section B to figure the amount of credit you may take this
from column (b) of line 14, line 15, and line 16. Enter the total on
year. Then continue to Section C if the Credit Table shows that
Long Form 540NR, line 55. Write “Schedule P (540NR)” to the left of
you may also take your credit in Section C.
Long Form 540NR, line 55. Do not complete Long Form 540NR, line 51
2. Does the credit have carryover provisions?
through line 54.
Yes Enter the credit code, credit name, and credit amount in
Credits from Part III Line 4 through Line 12, and Line 18 through
column (a) of the section indicated by the table. Enter -0- in
Line 22 – Transfer these credits as follows:
column (b). Enter the credit amount in column (d). This is the
• If you are claiming the New Jobs Credit, enter the amount of the
amount of the credit you may carry over and use in future years.
credit from column (b) on Form 540NR, line 57, and form FTB 3527,
No You may not take the credit this year or in future years.
line 22a.
• If you claim one or two other credits, enter the name, code and
The prior year AMT credit must be applied before any credits that can
amount of the credit from column (b) on Form 540NR, line 58 and/or
reduce regular tax below the TMT.
line 59.
Section A1 Instructions
• If you have any remaining credits to claim from Section A or
Line 4 through Line 7 – If you have any of the credits listed in this section,
Section B, add the amounts from column (b) for those credits. Enter
complete column (a) through column (c) for each credit in the order listed.
the total on Form 540NR, line 60.
Line 7 Nonrefundable Child and Dependent Care Expenses Credit –
Section A2 Instructions
Enter the total amount of the credit from column (b), Section A1 on
Line 8 through Line 12 – Follow the Credit Table instructions to find
Form 540NR, line 50.
out in which section to claim your credit. Then complete column (a)
Line 17 Nonrefundable Renter’s Credit – Enter the total amount
through column (d) for each credit in each section before going to the
of nonrefundable renter’s credit from column (b), Section B1 on
next section.
Form 540NR, line 61.
If claiming the New Jobs Credit, enter the amount from form FTB 3527,
line 21, Total available jobs credit, in column (a.)
Credit Table Instructions
1. Find your credits in the Credit Table on page 8.
2. See which sections are identified under “Offset Tax in Section.”
3. Take the credit only in the sections the Credit Table identifies for your
credit.
4. Use the credit in the earliest section possible.
5. Complete each section before going to the next section.
Schedule P (540NR) Instructions 2013 Page 7

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